A recent action by RBI on the interest rates has caused havoc in the debt market. There are funds which has less impacted and some are more. From a layman investors view selecting a debt fund becomes a difficult due to lack of knowledge. Read this space to know how measure like Modified Duration can be of great help such situation.
Most investors ignore the risk factors involved in mutual fund before investing. This is a behavioural anomaly among investors which shows that they don‘t understand the risk return relationship. Financial expert Manikaran Singal explains ratios that measures volatility to enable investors to take better investment decision.
When investing in debt mutual funds, there are some parameters to be considered and compared before you finalize which debt mutual fund to invest in, based on your risk appetite, tax bracket, time horizon and liquidity requirements/investment time horizon. Read this space to how debt mutual funds work and how you can benefit from investing in it.